The survey brought out the fact that the trend of outsourcing investment management activities remains popular, with 50% of the respondents reporting as to contracting out all investment management activities.
The advisors who outsource have also responded that it positively impacts the growth of their practices. 94% said they were satisfied with their outsourcing solution.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Further, the outsourcing advisors cited their top drivers to outsourcing as access to asset allocation models, access to managers that advisors could not hire on their own and the potential to generate alpha through investment ideas.
The survey titled, "Investment Management Outsourcing: The State of the Art in 2012" had polled more than 500 financial advisors with AUM from under US$50 million to over US$1 billion.
Additionally, the advisors who do not outsource investment management said that their in-house management of client assets was central to their firms’ value proposition.
Eric Schweitzer, Northern Trust managing director of direct distribution remarked, "Financial advisory firms are seeking more efficient ways to manage time and control costs while positioning their practices for long-term growth and a consistent client-centric experience. Our research found that advisors looking to outsource highly value flexibility in an outsourcing provider. They also said that the single most negative impact of outsourcing was poor investment performance."
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
